As climate change rises to the top of government and corporate agendas, a growing number of companies are reviewing how to manage risks, identify opportunities and embed a viable transition strategy into their business models. The release of the Financial Stability Board Task Force's recommendations on climate-related financial disclosures (TCFD) last year, as well as several legislative procedures across key jurisdictions, have also raised this topic to board level and created a new urgency to present an integrated picture to investors.
A key element in ensuring that these issues are appropriately addressed falls to the important role that Supervisory Boards could, and should, play to support and oversee management in an environment marked by rapid change and unprecedented uncertainty. This will require the development of new approaches to board governance that bridge the divide between climate science, macroeconomic analysis and traditional board oversight processes and time horizons.
The World Economic Forum supports the growing awareness and development of climate-effective board governance. This will involve mapping the tools and principles that currently exist for boards and agreeing on what is needed to fill gaps and minimize siloed thinking. The Forum will also provide a digital platform for dialogue and exchange among experts and other relevant stakeholders that lead the work in this area. Currently, across key jurisdictions local chapters are being set-up in which Corporate Directors convene to establish effective climate governance in the corporations they are overseeing:
For more information, contact Dominik Breitinger, World Economic Forum